Booklet aims to educate consumers on credit

Among the missions of Maine’s Bureau of Consumer Credit Protection are education and outreach. The bureau is offering a useful and wide-ranging tool with the recent release of the “Downeaster Guide: Consumer Credit 101.”

The 60-page booklet covers several topics: establishing credit, comparison shopping for credit, buying land, financing auto loans, getting a mortgage and avoiding common mistakes.

“The guide is kind of like a handheld, paper GPS for credit,” says David Leach, principal investigator for the bureau and the prime author of the document. “We want to get people to think about their personal finances, think about how much they can afford to borrow, and then shop around for the best rates.”

The guide warns consumers with poor credit histories that there are no quick fixes. It states would-be borrowers with low credit scores “should only finance what they can comfortably afford to repay, and a combination of on-time payments and careful financial planning will eventually improve their credit standings.”

It also covers the basics of credit reporting. For example, loans that contain delinquent payments may stay on a credit report for up to seven years, and bankruptcy information might be on record for as long as 10 years. Just as it takes time to establish a good credit rating, it takes time to clean up a bad one.

Consumer Credit 101 also deals with mortgages, credit cards and land purchases. You also can find useful information about buying and financing boats, campers, all-terrain vehicles and snowmobiles. The section on auto loans contains a nifty chart comparing various annual percentage rate-rebate combinations, demonstrating that doing a little math and choosing wisely can save a buyer some serious money.

The guide covers the basics of debt collection and bankruptcy, and includes outlines of selected Maine and federal regulations on credit. It also includes contact information for other state consumer assistance services, such as the Maine Bureau of Insurance, Maine Bureau of Financial Institutions and Maine Office of Licensing and Registration.

David Leach isn’t overstating things when he calls the guide “an indispensable tool for anyone that wants to get the best deal on credit.” It’s well-written and organized and handles topics in enough detail to cover the subject without overwhelming the reader.

The “Downeaster Guide: Consumer Credit 101” is free and available online at www.maine.credit.gov or by calling the Bureau of Consumer Credit Protection at 800-332-8529. Within a week, we will have copies that you may pick up at Northeast CONTACT’s office at 109 State St., Bangor.

Consumer Forum is a collaboration, now in its 30th year, of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual and business memberships are available at modest rates. Interested and motivated prospective volunteers are always needed and welcome to apply to help with our mission. For assistance with consumer-related issues, including consumer fraud and identity theft, or for more information, write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.